Chinese Oil Producers and Saudi Aramco Compete for $2 Billion Stake in U.S.
Shale-Gas Services Company
Two of China's biggest oil producers are competing for a stake in a U.S.
shale-gas services company—another step in China's effort to tap its huge
reserves of a fuel that has helped the U.S. reduce its dependence on energy
imports.
Cnooc Ltd. and China
Petrochemical Corp. are competing to buy a 30% stake in Texas-based Frac Tech
Holdings LLC in a deal that could be valued at about $2 billion, a person
familiar with the situation said. State-controlled Saudi Arabian Oil Co. also is
bidding, the person said. Cnooc and Sinopec, as China Petrochem is known, didn't
respond to requests for comment Thursday. Saudi Aramco couldn't be reached.
For Sinopec, the bid is part of a multitiered expansion effort into natural
gas. The company's China Petroleum &
Chemical Corp. unit and ENN Energy
Holdings Ltd. on Tuesday offered up to $2.15 billion to acquire China Gas
Holdings Ltd. China Gas, which has an extensive gas-distribution network in
China, said late Wednesday that the bid "fails to reflect its fundamental
value." Sinopec is likely to press on regardless, people close to the offer
said.
Wall Street Journal
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